The Importance Of Location In Real Estate

We’ve all heard the saying “location, location, location”, and understanding the meaning seems easy enough. However, there are plenty of real estate investors who lose out every year because they have chosen property in the wrong location with the hopes that they will be able to make a profit. There really isn’t a lot that is more important than the location of the property you plan to purchase, so take a good look at everything around you to ensure you are choosing the right home, land, or apartment complex for your needs.

One reason many people jump right into a purchase for property that is not in the right location is because the price sways them. It is hard to pass up anything that looks like a good deal, even if you’re not sure just how good that deal is. If you see a price that is just too good to be true, you can pretty much guarantee that it is. There will be some reason that you can purchase property for just pennies on the dollar, and you don’t want to find out what those reasons are after you’ve signed all the papers at the closing table.

Another mistake people make is purchasing property in a bad location because they plan to use it only as rental property. After all, if you’re just planning to always have tenants and never to live in it or sell it, there is nothing wrong with getting rental property in a bad location, right? Wrong. To work with good, quality tenants, you will need to provide a home in a safe and fun location. Your tenants will need to know they are safe at night and that the schools are good for the kids.

If you attempt property management for a building or home in a bad location, you will likely see that there is a great deal of vacancy to deal with. There is no way to make a monthly profit on your investment properties if you don’t have tenants from which to collect the rent. You will quickly see that your property that was too good to be true really was that, and your career as a landlord will wither before it has a chance to grow. Don’t make the mistake of choosing property in just any location. Always do your research and make wise decisions regarding the neighborhoods where you purchase homes.

By: Ken Boutilier

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Ken Boutilier is an Atlantic Canadian based real estate investor, trainer, speaker, consultant and entrepreneur who has combined his knowledge of real estate investing and Internet marketing to train and teach others how to increase their cash flow through successful real estate investing. Learn more at Real Wealth Atlantic.